At Shafritz & Dean, we often say that our goal is to make sure everyone walks away happy. While real estate transactions don’t always go exactly as planned, our experience allows us to find practical solutions that keep deals together when emotions run high and stakes are even higher.
Recently, we were involved in a closing that could have easily fallen apart at the finish line.
The transaction was already operating on very tight margins. Throughout the process, the seller had been led to believe that he would walk away from the sale with approximately $5,000 in proceeds. However, when the final numbers were calculated, tax prorations and an unexpected payoff discrepancy reduced the seller’s net proceeds to only about $3,000.
As you can imagine, the seller was frustrated.
From his perspective, he had agreed to the sale based on the expectation that he would receive $5,000. Learning that he would receive $2,000 less at closing felt like a broken promise.
The buyer, however, saw the situation very differently. The buyer argued that they were not responsible for either the tax prorations or the payoff calculations. From a legal standpoint, they were correct. These adjustments were outside of the buyer’s control and were not caused by anything they had done.
The seller’s response was equally firm. If he wasn’t going to receive the amount he expected, he would rather walk away from the transaction altogether than lose another $2,000. At that point, the closing had reached a standstill. Emotions were escalating, and neither side was willing to give ground.
This is where an experienced closing attorney can make all the difference.
Rather than allowing the disagreement to derail the transaction, we stepped in to help both parties focus on the bigger picture. We acknowledged the buyer’s position and agreed that they were not responsible for the tax prorations or payoff discrepancy. At the same time, we recognized that expectations had been set with the seller and those expectations had not been met.
We also reminded both parties of a critical fact that had been overshadowed by the dispute: the property was facing foreclosure.
If the closing did not occur that week, the likelihood was that the home would go into foreclosure. If that happened, nobody would get what they wanted. The seller would lose the property, the buyer would lose the opportunity to purchase the home, and the transaction would become a loss for everyone involved.
Once both parties understood the reality of the situation, the conversation shifted from assigning blame to finding a solution.
After further discussion, the buyer and seller agreed to split the difference. The seller received more than the $3,000 initially projected, and the buyer contributed enough to help bridge the gap without taking on the entire burden of the miscalculation.
Most importantly, the deal closed.
The seller avoided foreclosure. The buyer acquired the property. Both parties achieved the majority of what they wanted, and a transaction that was on the verge of collapse was successfully completed.
This experience highlights an important truth about real estate closings: sometimes the most valuable service a closing attorney provides isn’t preparing documents or coordinating signatures. It’s helping people navigate difficult situations, manage expectations, and find common ground when a deal appears impossible to save.
At Shafritz & Dean, we understand that every closing represents real people, real finances, and real emotions. That’s why we’re committed to doing everything we can to create solutions that work for everyone involved.
Because when the dust settles, our goal remains the same: making sure everyone walks away happy.